The production possibilities frontier demonstrates the basic economic principle that economies are always efficient. ( )
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Trade based on each country’s comparative advantage is economically efficient only if each country also has the absolute advantage in producing their good. ( )
An increase in the number of tomato producers will increase market supply because market demand will increase as more tomatoes are produced. ( )
In the long run under monopolistic competition, when firms advertise, they can earn positive economic profit by increasing market share. ( )
If the price elasticity of supply equals zero, this implies that the supply curve is perfectly vertical. ( )